The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-08-06
WHY STOCKS ARE WEAK.
DUN 81 co. DRAW A PICTURE OF
THE PRESENT SITUATION.

Absence of Investors, Absorption of
Capital and the Fear of the Conse-
quences OF the Collapse of Recent
Negotiations Among tho Causes
Heavy Shipments of Grain BY Water
ways.
New YORK, Aug. 5.-R. G.. Dun & Co. S
weekly trade review says The final official
statement shows l53, ,SS1 ,022 bushels net ex-
ports of wheat for the year, but of this
quantity the 9,300, 900 bushels owned by the
California ring abroad is still as much in
the way as if it had not been shipped. A
slow movement for some time to come seems
to be probable, which may help the money
market to some extent.
Stocks tumbled again, but have recovered
little. On Saturday they averaged SIS per
share lower than July and 81 lower than
in January, and were a trifle lower than
year ago, but yesterday the market was
stronger. The absence of investors, absorp-
ton of capital hero and elsewhere, and fear
of the consequences of the recent failures in
railroad negotiations and in wheat opera
tions sufficiently explain the late weakness.
Railroads arc pressed by the lowest lake
rates of the year-Sc for wheat from Chicago
to Buffalo-and in June the canals moved TO
New York Z, 10000 bushels, against 6,000,-
COO by the trunk lines. But the main fact
is that money has found other uses. Secre-
tary Fairchild offers to prepay interest with
rebate, and to buy bonds if offered low
enough; but the men who have bonds are
not the men who need money in q pinch.
Only the 81 100000 interest payable to
banks on bonds held is certain to
be drawn unless the rebate is
hereafter abandoned; and whether the
banks or permanent investors will
sell bonds at acceptable terms is uncertain.
The order in short affects momentary con-
fidence more than the actual supply of
money. The expectation that less will be
wanted West and South because banks there
hold $9,000,0O0 more than year ago and
So, 100000 more than two years ago, is met
by the fact that the loans of the same banks
in the Western and Southern States have
increased SSS, 100000 since last year and
$l42000,000 in two years, showing a great
increase in the demand for money in new
enterprises.
GOOD NEWS FROM THE INTERIOR.
The reports from interior points are
almost uniformly favorable, but money is
already reported tight at Kansas City, At
lanta and some other points. The demand
appears greater than the supply at Cleve
land and Omaha, and collections are less
satisfactory at several centres.
Crops are less favorably reported in Mich
igan and Georgia, and harvesting in the
Northwest shows disappointing results, ac-
cording to st Paul advices, but elsewhere
the accounts are excellent.
The season is one of comparative mac
tivity in trade but of preparation for the
future, and the great confidence felt re-
Gently is in some quarters less strongly
manifested.
At the East the heavy shipments Of money
TO the West and large engagement for the
future attract attention. Boston has put
$45, 900, 900 into undertakings and pledged
$4,000, 900 more. A similar, though small
er, drain is felt at Philadelphia and Balti-
more. The Treasury has taken from
the market during the week
81 ,400,0 900 IN gold, with substantially no
change in silver and legal tenders The sd-
vance in rates by the Bank of England,
though explained by South American ship
ment, was doubtless calculated to arrest any
movement to this country. but the recent
exports are not large, the shipments from
New York for five weeks being per cent
below those of last year, with 8 per cent
increase in imports The heavy imports of
iron in June--54, ,627 tons of pig, 81, 1873 of
scrap and "a, ,GGJ of manufactured-cause a
less confident tone. Rails are offered for
winter delivery by some makers at $37 50.
WOOL ALSO LOWER.
Wool is also offered lower by some holders
and the wooden goods market shows no great
activity.
PRINT cloths are lower, but other cottons
are firmly held. In brief great speculations
have unpleasantly blocked the wheels Of
trade in many branches and absorbed or
locked up vast sums Of money which will be
wanted during the fall But for this per-
nicious influence the outlook would be far
more encouraging.
The business failures occurring through
out the country during the last week mum
Der for the United States 163 and for Can
ada 20, total of 1S3 against 1Si last week
and 172 the week previous